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Courier Corporation (Nasdaq: CRRC), one of America's leading book
manufacturers and specialty publishers, today announced fourth-quarter
and full-year results for its fiscal year ended September 24, 2011.

Courier's fourth-quarter 2011 revenues were $73.7 million, up 5% from
$70.2 million in last year's fourth quarter. Net income for the quarter
was up sharply to $6.4 million or $.53 per diluted share. In fiscal
2010, fourth-quarter net income was $1.1 million or $.09 per diluted
share including a $4.7 million pretax impairment charge, and $4.2
million or $.35 per diluted share excluding that impairment charge.

For fiscal 2011 overall, Courier sales were $259.4 million, up slightly
from $257.1 million in fiscal 2010. Net income for the year was $134,000
or $.01 per diluted share including earlier charges for impairment,
restructuring and the writedown of receivables from Borders Group Inc.
Excluding these charges, net income for fiscal 2011 would have been
$10.7 million or $.89 per diluted share. For fiscal 2010, net income was
$7.1 million or $.60 per diluted share including the fourth-quarter
impairment charge, and $10.2 million or $.85 per diluted share excluding
it. Details of the impairment charges and other costs can be found in
the tables at the end of this release.

"We finished this challenging year with significant achievements in both
of our business segments," said Courier Chairman and Chief Executive
Officer James F. Conway III. "Our book manufacturing segment had one of
the best quarters in its history, as we continued to benefit from our
leadership in technology and service to the education and religious
markets.

"Sales to the specialty trade market continued to be down, reflecting
the same forces that have constrained our publishing businesses for the
last several quarters. As a result, over the course of the year we made
painful adjustments in both our manufacturing and publishing segments to
streamline operations and reduce costs, including the March closure of
our Stoughton plant. Yet both segments also achieved important
milestones with continuing promise for the future. Our investment in
Courier Digital Solutions more than justified itself with explosive
growth in customized textbooks filling all three presses through a busy
summer season. At the same time, Courier Publishing ramped up its
investment in digital and online offerings across all three of its
businesses.

"Throughout the year, we maintained our solid cash flow and strong
financial position, reducing our debt by $2 million from a year earlier
to $21.5 million. With new presses up and running both at Courier
Digital Solutions and at our Kendallville, Indiana four-color offset
plant, the current round of capital expenditures is winding down. In its
wake, we are better positioned than ever to deliver excellent service to
our customers, many of whom face the same market challenges as we do.
Helping them succeed remains the surest path to our own success.

"At our Board of Directors meeting this past week, Courier's Executive
Vice President and Chief Operating Officer Bob Story announced his
intention to retire in December following a remarkable 25-year career in
which he has been a key contributor to our successes both as a book
manufacturer and as a publisher. I would like to take this opportunity
to express my deepest thanks to Bob for his extraordinary services to
our company, both in the past and present and also in his continuing
service in an advisory role. At the same time, I am pleased to announce
the promotion of Rajeev Balakrishna to Senior Vice President and General
Counsel, with overall responsibility for publishing operations; and the
appointment of Peter Folger, Courier's Senior Vice President and Chief
Financial Officer, to the additional corresponding role of head of our
book manufacturing operations.

"Finally, I am pleased to report that once again, Courier's Board of
Directors declared a dividend of $.21 per share, the same as last
quarter. In addition, the Board reaffirmed its commitment to the
dividend for the coming fiscal year, based on its confidence in the
continuing strength of the company's balance sheet, cash flow and
business prospects."

Book manufacturing: solid growth in education continues

Courier's book manufacturing segment had fourth-quarter sales of $66.6
million, up 9% from $61.1 million last year. Operating income in the
fourth quarter was $11.0 million, up 61% from $6.8 million in the fourth
quarter of fiscal 2010.

For the full year, book manufacturing sales were $230.2 million, up 3%
from $222.8 million in fiscal 2010. The segment's full-year operating
income was up 18% to $22.5 million, excluding the restructuring costs,
versus $19.1 million in fiscal 2010.

The segment's gross profit was $17.8 million or 26.7% of sales in the
fourth quarter, versus $14.0 million or 22.8% a year ago. Gross profit
for fiscal 2011 was $49.8 million or 21.7% of sales, excluding
restructuring costs, versus $46.8 million or 21.0% of sales last year.
The improvement in margins in a competitive pricing environment
reflected an improved sales mix, operating efficiencies made possible by
recent technology investments and the closing of the Stoughton plant,
and increased recycling income.

The book manufacturing segment focuses on three markets: education,
religion, and specialty trade. Sales to the education market were
$31 million in the fourth quarter, up 16% from a year earlier. For the
year, education sales were $100 million, up 9% from fiscal 2010, due to
higher sales of college textbooks. Sales to the religious market
were up 6% to $18 million in the quarter, and up 5% to $66 million for
the full year, reflecting gains at Courier's largest religious customer.
Sales to the specialty trade market were down 8% to $14 million
in the quarter, and down 9% to $54 million for the full year, reflecting
the impact of the Borders Group bankruptcy and the growth of e-books on
trade publishers.

During the year Courier added four-color press capacity, both digital
and offset, to meet robust demand for college textbooks. At Courier
Digital Solutions, the software and solutions capabilities of Highcrest
Media continued to drive rapid growth in the production of customized
versions of textbooks tailored to the needs of individual schools,
professors and classes. With its second digital inkjet press fully
booked following its installation last September, the company added a
third HP press in June, in time for the peak summer season.

"Our book manufacturing business succeeded in the midst of widespread
market uncertainty through a combination of innovation and
consolidation," said Mr. Conway. "Sales were up modestly for the year,
but with significant disparities between markets, and between different
kinds of book production. The Borders bankruptcy validated our decision
to close our one-color plant in Stoughton, Massachusetts in the face of
declining demand for one-color books. Meanwhile, our investment in
Courier Digital Solutions and our continuing leadership in four-color
offset production paid off handsomely in the college textbook market.
While sales at the elementary and high school levels were up in the
fourth quarter, they remained down for the year amid continuing soft
demand.

"We also continued to work closely with our largest religious customer,
a global missionary organization we now serve across more than 100
countries. Religious sales grew at a mid-single-digits pace in line with
past patterns and with the long-term customer agreement signed this past
year in support of the organization's ambitious program of worldwide
Scripture distribution."

Specialty publishing results reflect impact of Borders liquidation

Courier's specialty publishing segment includes three businesses: Dover
Publications, a niche publisher with thousands of titles in dozens of
specialty trade markets; Research & Education Association (REA), a
publisher of test preparation books and study guides; and Creative
Homeowner, which publishes books on home design, decorating, landscaping
and gardening.

Fourth-quarter revenues for the segment were $10.1 million, down 15%
from last year's fourth quarter, reflecting a combination of direct and
indirect effects of the Borders Group bankruptcy and liquidation. The
direct impact came from the loss of $900,000 in sales to Borders itself;
indirect consequences included reduced consumer purchasing at other
bookstores and reduced remainder sales in a market temporarily saturated
by the Borders liquidation, resulting in an increase in Courier's
obsolescence reserve. Sales were down 14% at Dover, 20% at Creative
Homeowner, and 20% at REA, for which Borders had been the second-largest
customer. Despite its sales decline, REA remained profitable, but Dover
and Creative Homeowner reported operating losses. Overall, the segment's
fourth-quarter operating loss was $872,000, versus operating income of
$211,000 in fiscal 2010.

For the year as a whole, specialty publishing sales were $40.8 million,
down 11% from $46.0 million in fiscal 2010, with $3.3 million, or more
than 60% of the decline, attributable to lost sales to Borders. The
segment's operating loss for the year was $4.1 million, excluding the
second quarter bad-debt provision for Borders, versus a loss of $714,000
last year. In addition to lower sales, key factors in the loss included
increased returns and the increased allowance for inventory obsolescence.

Positive developments, both in the quarter and for the year, included
double-digit increases in sales to online retailers and excellent sales
growth at mass merchandising chains, an emerging channel Courier
cultivated to reach a broader audience and complement sales at
traditional bookstores. At the same time, the company expanded its
investment in digitized content, including the conversion of printed
content into electronic form to take advantage of the growing market for
e-books, maximize its flexibility to reintroduce or repurpose
out-of-print titles, and make the quality of its content more visible to
online shoppers and search engines.

"The Borders bankruptcy and liquidation continued to cast a shadow over
the entire industry for much of our fiscal year," said Mr. Conway. "The
effects lasted right through our fourth quarter, when Borders liquidated
the remainder of its more than 600 original stores. In addition, e-books
continued to account for a growing share of total trade books sold.
Between these two factors and the unsettled economy, it was a
challenging year for trade publishers everywhere, Courier included. We
were partially able to compensate through increased sales to online
retailers, and we began reaping significant benefits from our outreach
to the major nationwide retail chains.

"With traditional bookselling channels narrowing through store closings,
reductions in shelf space and cautious buying, the entire industry is
still working its way to a post-Borders equilibrium in the supply chain.
Following the close of the fiscal year we took additional steps to bring
Courier Publishing's cost structure in line with the reduced demand we
have been experiencing during this period.

"At the same time, we moved decisively to capture our own piece of the
e-book traffic that has been the brightest spot in the industry
throughout the year. Over the coming months and years, readers will find
our superb offering of books in print complemented by a rapidly
expanding array of digital content, from online study centers to e-books
and mobile apps."

Outlook

"Our greatest successes as a book manufacturer in fiscal 2011 came from
playing to our strengths in the education and religious markets, and we
expect to do more of the same in fiscal 2012," said Mr. Conway. "We also
expect Courier Digital Solutions to continue to outpace the overall
education market with its integrated solutions for customized textbook
production. On the publishing side, having worked our way through the
worst of the Borders collapse, we expect conditions in the traditional
bookstore supply chain to gradually stabilize. At the same time, we
continue to pursue additional relationships in non-bookstore channels,
both bricks-and-mortar and online. And we will be courting consumers not
only through this broader range of channels, but also through the
release of e-books and other digital content alongside our print
offerings.

"With our new presses up and running, we expect capital expenditures,
which were $16 million in fiscal 2011, to decline to between $10 million
and $12 million in fiscal 2012. We also expect to benefit from a full
year's worth of cost reductions related to the March 2011 closure of our
one-color plant in Stoughton, Massachusetts, as well as from cost
reductions this fall at Courier Publishing.

"As in the past, we expect our performance in fiscal 2012 to follow a
seasonal pattern, with the larger portion of our earnings coming in the
second half.

"In line with our past practice, today's guidance, including comparisons
to prior performance, excludes impairment and restructuring charges. It
also excludes severance expenses related to this fall's cost-reduction
measures in our publishing segment as well as certain post-retirement
benefits. Overall, we expect fiscal 2012 sales of between $273 million
and $286 million, an increase over fiscal 2011 of between 5% and 10%
(which includes the benefit of a 53-week year in fiscal 2012). And we
expect earnings per diluted share of between $.75 and $1.05, which
compares with our fiscal 2011 earnings of $.89 per diluted share,
excluding the Borders receivable write-off.

"In addition to measuring our performance by generally accepted
accounting principles, we also track several non-GAAP measures including
EBITDA (earnings before interest, taxes, depreciation and amortization)
as an additional indicator of the company's operating cash flow
performance. This measure should be considered in addition to, not a
substitute for or superior to, measures of financial performance
prepared in accordance with GAAP. In fiscal 2012, we expect EBITDA to be
between $39 million and $45 million, compared to $39 million in fiscal
2011.

Factors not incorporated into this guidance include the possibility of
future impairment or restructuring charges.

About Courier Corporation

Courier Corporation prints, publishes and sells books. Headquartered in
North Chelmsford, Massachusetts, Courier has two operating segments,
full-service book manufacturing and specialty book publishing. For more
information, visit www.courier.com.

This news release includes forward-looking statements, including
statements relating to the continuation of the Company's dividend for
fiscal year 2012, expansion into e-books and digital content offerings,
and the Company's financial expectations for fiscal year 2012, including
sales, EBITDA, earnings per share and capital expenditures.Statements
that describe future expectations, plans or strategies are considered
"forward-looking statements" as that term is defined under the Private
Securities Litigation Reform Act of 1995 and releases issued by the
Securities and Exchange Commission.The words "believe,"
"expect," "anticipate," "intend," "estimate" and other expressions which
are predictions of or indicate future events and trends and which do not
relate to historical matters identify forward-looking statements.Such
statements are subject to risks and uncertainties that could cause
actual results to differ materially from those currently anticipated.Factors that could affect actual results include, among others,
changes in customers' demand for the Company's products, including
seasonal changes in customer orders and shifting orders to lower cost
regions, changes in market growth rates, changes in raw material costs
and availability, pricing actions by competitors and other competitive
pressures in the markets in which the Company competes, consolidation
among customers and competitors, insolvency of key customers or vendors,
changes in the Company's labor relations, success in the execution of
acquisitions and the performance and integration of acquired businesses
including carrying value of intangible assets, restructuring and
impairment charges required under generally accepted accounting
principles, changes in operating expenses including medical and energy
costs, changes in technology including migration from paper-based books
to digital, difficulties in the start up of new equipment or information
technology systems, changes in copyright laws, changes in consumer
product safety regulations, changes in environmental regulations,
changes in tax regulations, changes in the Company's effective income
tax rate and general changes in economic conditions, including currency
fluctuations, changes in interest rates, changes in consumer confidence,
changes in the housing market, and tightness in the credit markets.Although
the Company believes that the assumptions underlying the forward-looking
statements are reasonable, any of the assumptions could be inaccurate,
and therefore, there can be no assurance that the forward-looking
statements will prove to be accurate.The forward-looking
statements included herein are made as of the date hereof, and the
Company undertakes no obligation to update publicly such statements to
reflect subsequent events or circumstances.

COURIER CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Unaudited)

(In thousands, except per share amounts)

QUARTER ENDED

YEAR ENDED

September 24,

September 25,

September 24,

September 25,

2011

2010

2011

2010

Net sales

$73,667

$70,238

$259,375

$257,140

Cost of sales

52,832

51,706

203,341

193,129

Gross profit

20,835

18,532

56,034

64,011

Selling and administrative expenses

11,094

11,643

47,447

47,017

Impairment charges (1)

-

4,734

8,608

4,734

Operating income (loss)

9,741

2,155

(21

)

12,260

Interest expense, net

276

244

921

611

Income (loss) before taxes

9,465

1,911

(942

)

11,649

Income tax provision (benefit)

3,051

786

(1,076

)

4,535

Net income

$6,414

$1,125

$134

$7,114

Net income per diluted share

$0.53

$0.09

$0.01

$0.60

Cash dividends declared per share

$0.21

$0.21

$0.84

$0.84

Wtd. average diluted shares outstanding

12,040

11,954

12,022

11,935

SEGMENT INFORMATION:

Net sales:

Book Manufacturing

$66,602

$61,118

$230,229

$222,777

Specialty Publishing

10,069

11,894

40,829

46,030

Elimination of intersegment sales

(3,004

)

(2,774

)

(11,683

)

(11,667

)

Total

$73,667

$70,238

$259,375

$257,140

Operating income (loss):

Book Manufacturing

$11,023

$6,846

$14,822

$19,070

Specialty Publishing

(872

)

211

(4,821

)

(714

)

Impairment charges (1)

-

(4,734

)

(8,608

)

(4,734

)

Stock based compensation

(368

)

(275

)

(1,440

)

(1,287

)

Intersegment profit

(42

)

107

26

(75

)

Total

$9,741

$2,155

($21

)

$12,260

(1)

In the third quarter of this fiscal year, the Company recorded a
$8.6 million non-cash, pre-tax impairment charge related to REA
which on an after-tax basis was $5.0 million, or $.42 per diluted
share. In the fourth quarter of the prior year, the Company
recorded a $4.7 million non-cash, pretax impairment charge related
to Creative Homeowner, which on an after-tax basis was $3.1
million, or $.26 per diluted share.

COURIER CORPORATION

SEGMENT RESULTS OF OPERATIONS (Unaudited)

(In thousands)

BOOK MANUFACTURING SEGMENT

QUARTER ENDED

YEAR ENDED

September 24,

September 25,

September 24,

September 25,

2011

2010

2011

2010

Net sales

$66,602

$61,118

$230,229

$222,777

Cost of sales

48,833

47,164

187,643

176,020

Gross profit

17,769

13,954

42,586

46,757

Selling and administrative expenses

6,746

7,108

27,764

27,687

Operating income

$11,023

$6,846

$14,822

$19,070

SPECIALTY PUBLISHING SEGMENT

QUARTER ENDED

YEAR ENDED

September 24,

September 25,

September 24,

September 25,

2011

2010

2011

2010

Net sales

$10,069

$11,894

$40,829

$46,030

Cost of sales

6,960

7,422

27,406

28,698

Gross profit

3,109

4,472

13,423

17,332

Selling and administrative expenses

3,981

4,261

18,244

18,046

Operating income (loss)

($872

)

$211

($4,821

)

($714

)

COURIER CORPORATION

CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited)

(In thousands)

September 24,

September 25,

ASSETS

2011

2010

Current assets:

Cash and cash equivalents

$104

$107

Investments

1,141

1,090

Accounts receivable

35,320

35,123

Inventories

39,353

39,933

Deferred income taxes

4,431

4,109

Other current assets

1,443

2,388

Total current assets

81,792

82,750

Property, plant and equipment, net

100,523

103,009

Goodwill and other intangibles

18,591

27,409

Prepublication costs

7,334

7,734

Deferred income taxes

3,508

-

Other assets

1,278

1,292

Total assets

$213,026

$222,194

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Current maturities of long-term debt

$1,804

$1,794

Accounts payable

12,061

14,399

Accrued taxes

2,185

617

Other current liabilities

15,433

15,358

Total current liabilities

31,483

32,168

Long-term debt

19,718

21,904

Deferred income taxes

-

1,385

Other liabilities

7,502

3,788

Total liabilities

58,703

59,245

Total stockholders' equity

154,323

162,949

Total liabilities and stockholders' equity

$213,026

$222,194

COURIER CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)

(In thousands)

For the Years Ended

September 24,

September 25,

2011

2010

Operating Activities:

Net income

$134

$7,114

Adjustments to reconcile net income to

cash provided from operating activities:

Depreciation and amortization

23,162

20,681

Impairment charges

8,608

4,734

Stock-based compensation

1,440

1,287

Deferred income taxes

(5,215

)

1,561

Gain on disposition of assets

-

(183

)

Changes in other working capital

973

(727

)

Other long-term, net

3,211

(274

)

Cash provided from operating activities

32,313

34,193

Investment Activities:

Capital expenditures

(15,666

)

(28,426

)

Business acquisition

-

(3,000

)

Prepublication costs

(4,345

)

(4,162

)

Proceeds on disposition of assets

-

590

Short-term investments

(51

)

(73

)

Cash used for investment activities

(20,062

)

(35,071

)

Financing Activities:

Long-term debt borrowings (repayments), net

(2,176

)

10,088

Cash dividends

(10,151

)

(10,068

)

Proceeds from stock plans

413

473

Other

(340

)

-

Cash provided from (used for) financing activities

(12,254

)

493

Decrease in cash and cash equivalents

($3

)

($385

)

In addition to measuring our performance by generally accepted
accounting principles, we also track several non-GAAP measures
including EBITDA (earnings before interest, taxes, depreciation
and amortization) as additional indicators of the company's
operating cash flow performance. These measures should be
considered in addition to, not a substitute for or superior to,
measures of financial performance prepared in accordance with GAAP.

Non-GAAP reconciliation - EBITDA:

Net income

$134

$7,114

Income tax provision (benefit)

(1,076

)

4,535

Interest expense, net

921

611

Depreciation and amortization

22,867

20,681

Impairment charges

8,608

4,734

Restructuring costs

7,672

-

EBITDA

$39,126

$37,675

COURIER CORPORATION

OTHER RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES (Unaudited)

(In thousands, except per share amounts)

Year Ended September 24, 2011

Income(Loss)Before Taxes

Income TaxProvision(Benefit)

NetIncome(Loss)

Net Income(Loss) perDiluted Share

GAAP basis measures

($942

)

($1,076

)

$134

$0.01

Impairment charge

(1)

8,608

3,582

5,026

0.42

Restructuring costs

(2)

7,672

2,646

5,026

0.42

Bad-debt write-off

(3)

700

235

465

0.04

Non-GAAP measures

$16,038

$5,387

$10,651

$0.89

Year Ended September 25, 2010

Income(Loss)Before Taxes

Income TaxProvision(Benefit)

NetIncome(Loss)

Net Income(Loss) perDiluted Share

GAAP basis measures

$11,649

$4,535

$7,114

$0.60

Impairment charge

(1)

4,734

1,657

3,077

0.26

Non-GAAP measures

$16,383

$6,192

$10,191

$0.85

BOOK MANUFACTURING SEGMENT

Year Ended September 24, 2011

GAAP BasisMeasures

RestructuringCosts (2)

Non-GAAPMeasures

Net sales

$230,229

$230,229

Cost of sales

187,643

(7,261

)

180,382

Gross profit

42,586

7,261

49,847

Selling and administrative expenses

27,764

(411

)

27,353

Operating income

$14,822

$7,672

$22,494

SPECIALTY PUBLISHING SEGMENT

Year Ended September 24, 2011

GAAP BasisMeasures

Bad-DebtProvision (3)

Non-GAAPMeasures

Net sales

$40,829

$40,829

Cost of sales

27,406

27,406

Gross profit

13,423

-

13,423

Selling and administrative expenses

18,244

(700

)

17,544

Operating income (loss)

($4,821

)

$700

($4,121

)

(1)

In the third quarter of this fiscal year, the Company recorded a
$8.6 million non-cash, pre-tax impairment charge related to REA,
representing all of REA's goodwill as well as $200,000 related to
the write-down of under-performing titles. In the fourth quarter
of the prior year, the Company recorded a $4.7 million non-cash,
pre-tax impairment charge related to Creative Homeowner, which on
an after-tax basis was $3.1 million, or $.26 per share.

(2)

In the second quarter of fiscal 2011, the Company closed its book
manufacturing plant in Stoughton, Massachusetts, due to the impact
of technology and competitive pressures affecting the one-color
paperback books in which the plant specialized. Restructuring
charges included $4.4 million related to severance and pension
withdrawal liabilities and $3.3 million for lease termination and
other facility closure costs.

(3)

The Company recorded a $700,000 bad-debt write-off related to
Borders Group, Inc.